All Forum Posts by: Randy Smith

My wife and I are new to real estate investing, and we're currently looking at investing in properties in Kansas City, MO. We live here in Phoenix area, and we've not been able to find any buy and hold properties that will provide positive cash flow. We're using a HELOC at 5.25% for our purchase, and then we plan on doing a cash out refi after we get a tenant in place.

We've connected with a Kansas City, MO turn key provider, and they offer a program where you purchase one of their properties (likely foreclosure, bank owned, etc), use their construction company for rehab, and then use their property management company to manage.  You end up with a positive cash flowing property and they present the opportunity as if you have 8-12% equity upon completion.    The name of the company is Kansas City Investment Specialist, the owner is Pat Grace, the real estate company is United Real Estate, and the construction company is KC Rehab Construction.

Questions:  

Have you heard of these types of companies?  

Is there benefit to using this type of program versus a tradition turn key?

Does anyone have any experience with any of these companies or Pat Grace?

We had a great conversation with Pat and Amanda, and we are seriously considering moving forward with one of these properties, but we wanted to get input from the BP Community first.

Best, 

Randy 

Hello BP Phoenix Members!

My wife and I are new to real estate investment, and we are very close to moving forward with a deal in San Tan Valley (flip with little reno).  We're also looking at properties in Kansas City, MO through a Turn Key Provider - Kansas City Investment Specialist.

We'd love to connect with those of you in they valley with similar interests.

Best,

Randy

@Akash Y. My wife and I are getting ready to pull the trigger on our first STR here in Phoenix area. I'd love to connect if possible.

@Akash Y.

Thanks @aaronmazzrillo.

Hello BP, I'm getting ready to buy my first 4-plex+, and I am trying to build my Real Estate Broker network to find this first deal. Can anyone provide ways to find GOOD brokers, and what types of questions should I be asking to verify their credentials? Also, I've heard there are a lot of shady brokers out there. What are some of the watch outs? Randy

Hello BP readers!

I'm just getting into real estate investing, and I've listened to about 75 of the BP podcasts, read their two most recent books (in addition to about 10 others) and started networking to build my "team."

I was recently contacted by a wholesaler in my local area via BP, and we had a great conversation about wholesaling.  With the advice I've read on here over and over again, I asked if I could help her and her business in anyway in trade for learning about the business.  She quickly offered the opportunity for me to place Bandit Signs for her business to drive some phone calls which she would coach me through her script in weeding out the leads.  

I was very excited about the opportunity, and she quickly had two very large boxes sent over via courier ($40 fee). I then began to start researching Bandit Sign best practices and tactics. Here's where the problem arose: while there definitely are advocates for bandit signs out there, and many people have had huge success with them, the large majority of my research lead to negative comments on using these signs. Specifically, I've learned that they are illegal in most areas (including Phoenix which is my area) which potentially leads to very large fines, they tend to give REI a bad name because they liter the roadways with tacky looking signs, and there seems to be a large population that goes around and pulls them up so this impacts their effectiveness.

Bottom Line: I'm not sure that I want to participate is something like this as I try to live my personal life and my business life with integrity, I don't want to incur any fines, I don't want to participate in giving REI a bad name in my community, and I don't want to waste my time on marketing efforts or educational efforts on something that won't lead to results. On the other hand, I feel bad that I've wasted this wholesaler's time as well as money (sending over the signs).

Any advice would be greatly appreciated.  I'd like to get back to the wholesaler as soon as possible so not to waste any more of her time if that is the direction I go.

Best,

Randy Smith

Hi Tom,

Thank you for your response. I'm just getting started, and I'm starting to narrow down my focus on buy and hold 4-plexes. I see a lot of opportunity for positive cash flow just from the MLS at this point, so I'll likely stay in the Phoenix area for my first deal or two. I'll keep your contact information for future buy and hold opportunities in the single family home sector.

Best of luck,

Randy Smith

I'm new to the REI world, and I am super excited about getting started. I've read Brandon Turner's The Book on Rental Property Investing, Rick Dad Poor Dad, and Cash Flow Quadrant, and I've listened to about 30 of the Bigger Pockets podcasts. I've started analyzing properties, and I keep running into the following challenges: 1.) Most properties don't show positive cash flow unless I offer 80% of asking price, and I'm scared to offend owners with that low of an offer and 2.) If I offer close to asking price, my calculation for CapEx usually makes the deal to thin to risk on my first deal. (FYI - I built an Excel sheet to do my analysis based on Brandon Turners's guidance in his book listed above, and I'd be happy to share with anyone that would like to see it).

Question: Should I base my numbers and potential offer price at 80% of asking price, or does it make sense to offer closer to asking price and consider buying a home warranty to cover any CapEx issues that arise with the rental.

Sell like crazy, and I'll see you at the top!